KUALA LUMPUR (Jan 23): Malaysian Resources Corp Bhd (KL:MRCB) is partnering Ipoh Sentral Sdn Bhd (ISSB) to jointly develop the Ipoh Sentral project, with an estimated gross development value of RM6.25 billion.
ISSB, a joint venture between Railway Assets Corporation’s (RAC) subsidiary Railway Assets Holding Sdn Bhd (RAHSB) and Silver Smart Sdn Bhd, owned by the Perak State Secretary (Incorporated), operates under a 50:50 shareholding structure.
The collaboration was formalised via the signing of a memorandum of agreement on Thursday for a transit-oriented development (TOD) project on RAC-owned land. While the land size was not disclosed, MRCB's bourse filing revealed that RAC is in the process of transferring the land ownership to RAHSB.
“The proposed development... will not only be a modern transportation hub connecting various modes of transportation, but will also upgrade the quality of life of the people through the integrated development,” said MRCB.
This announcement confirms The Edge’s report on Tuesday that MRCB has secured the bid for the Ipoh Railway Station Integrated Development Plan (iRide). The TOD project will transform the area behind the Ipoh Railway Station into Ipoh Sentral, incorporating affordable housing, commercial spaces, a hotel, green areas and educational institutions.
MRCB is also redeveloping KL Sentral, reported to cost over RM1 billion — to be borne by MRCB — under the public-private partnership unit under the Prime Minister’s Department.
MRCB was the master developer of KL Sentral, Malaysia’s largest transit hub comprising over 72 acres. The station opened in 2001 with a capacity of 100,000 passengers daily, but now handles some 200,000 passengers daily.
Other notable TOD projects by MRCB include PJ Sentral and Kwasa Sentral. The company recently exited the Berjaya-led consortium competing for the Kuala Lumpur-Singapore high-speed rail (KL-SG HSR) project on Dec 18, citing its intention to explore other strategic opportunities.
MRCB’s major shareholders include the Employees Provident Fund (EPF) with a 36.21% stake, Gapurna Sdn Bhd (15.48%) and Lembaga Tabung Haji (5.35%).
At the time of writing, shares of MRCB slipped half a sen or 0.96% to 51.5 sen, giving it a market capitalisation of RM2.32 billion.